News in Brief:
– Major animal feed producers in Nigeria suspending maize and sorghum purchases led to a price drop exceeding 10% in several states.
– The producers cite concerns about food insecurity and inflated prices, while seeking solutions with the government and exploring alternatives.
The suspension of maize and sorghum purchases by major animal feed producers in Nigeria has triggered a significant drop in grain prices across several states, according to a local news report.
Following the announcement by some of the countryâs major feed producers, like Olam Agri and Premier Feed Mills Ltd (PFM), the report claimed that markets witnessed a decline of 10% in maize and sorghum prices.
States like Taraba, Plateau, Kaduna, Kano among others were among those where traders reportedly made price adjustments as a result of the feed producersâ actions. Taraba, for example, saw maize prices fall from â¦58,000 to â¦42,000. The media reports that from market survey, there was a significant downward trend in grain prices across key producing states.
Olam Agri had blamed rising food insecurity and market disruptions for its temporary suspension of grain purchases in Nigeria. However, it had mentioned an ongoing collaboration with the government to address the food crisis and expressed a commitment to finding alternative solutions.
This latest development suggests a potential market correction in response to the suspension of purchases by major buyers. However, the long-term impact on food security and the agricultural sector remains to be seen.
Recall that these major buyers are responsible for financing farmers to keep producing grains locally. The government’s financial promises to bolster local production can come into play to replace these if no mutually benefiting agreement is reached to resolve the crisis.
